Exit and Growth Strategies for Middle Market Businesses

The report below provides a good overview of the first quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q4 2017 included 21 closed deals, according to data published by industry data tracker FactSet.
One of the notable transactions of the quarter closed in October when Genstar Capital, LLC acquired Tekni Plex, Inc., a portfolio company of American Securities, LLC, for a reported value approximately US$1.5 billion. Tekni-Plex manufactures and sells packaging, packaging products and materials, and tubing products primarily for the food and beverage, healthcare, specialty, lawn and garden and consumer markets. The company was founded in 1967 and is headquartered in Wayne, PA.

Rubber and plastic continue to Be major components for a wide range of commercial and industrial products.

Industry Indicators

US nondurable goods manufacturers’ shipments of plastics and rubber products, an indicator of plastic and rubber products production, fell 0.1% year-to-date in December 2017 compared to the same period in 2016.

The spot price of crude oil, a key raw material in plastic and rubber manufacturing, rose 17.3% in the week ending February 9, 2018, compared to the same week in 2017.

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